KL seeks $5b from Miyazawa Plan<\/p>\n
KUALA LUMPUR (AFP): Malaysia is seeking US$5 billion from a
\n30-billion-dollar fund for Asia proposed by Japan's Finance
\nMinister Kiichi Miyazawa in October, Second Finance Minister
\nMustapa Mohamed said Monday.<\/p>\n
\"They (Japan) appear quite serious about it,\" Mustapa said
\nduring a signing ceremony for a Japanese-government guaranteed
\nfive-year euronote issue arranged by Nomura Securities Co. Ltd.
\nraising 74 billion yen ($640 million) for Malaysia.<\/p>\n
Japan's finance ministry announced last week a $2.1 billion
\npackage for Malaysia \"under the principle\" of the Miyazawa
\nprogram, which initially targeted Indonesia, the Philippines,
\nThailand and South Korea as well.<\/p>\n
Unveiling the package two days later, Japan's ambassador to
\nMalaysia said it could be considered \"separate\" from the Miyazawa
\ninitiative as negotiations between Tokyo and Kuala Lumpur started
\nbefore the initiative was announced,<\/p>\n
Mustapa said the Malaysia government had been talking to
\nmultilateral agencies for financial aid. But \"at this point of
\ntime, we are not optimistic that the money will come in the near
\nfuture,\" he said.<\/p>\n
\"Negotiations naturally take some time to complete. We have
\nnot had much success on that front yet. This is the first big
\namount for this year.\"<\/p>\n
Asked why Malaysia turned down Singapore's offer of $4 billion
\nif it was not optimistic of alternative financing, Mustapa said
\nthe government had sufficient resources to cover budget deficits
\nin 1998 and 1999.<\/p>\n
\"We have enough money at this point of time to finance our
\ndeficit this year of 9.6 billion ringgit ($2.5 billion) and 16.2
\nbillion ringgit next year. We have raised some government
\nsecurities.<\/p>\n
\"With this money coming in, there is no urgency at this point
\nof time today or next few weeks to raise another loan.\"<\/p>\n
Malaysia said Thursday that it had dropped plans to seek $4
\nbillion in financial aid from Singapore in exchange for a long-
\nterm water supply deal.<\/p>\n
Malaysian Prime Minister Mahathir Mohamad told a news
\nconference in Hanoi that Malaysia found it has \"no real need for
\nthe loan.\"<\/p>\n
Asked if Malaysia was ruling out any financial aid from
\nSingapore, Mustapa said: \"We have been talking to the Japanese.
\nWe hope the Miyazawa offer will be finalized soon. We are putting
\nquite a bit of hope on Japan.\"<\/p>\n
Nomura said earlier this month that the euronote issue had
\nsold out to institutional investors.<\/p>\n
Proceeds of the issue, of which 66.6 billion yen is guaranteed
\nby the Japanese government under its trade insurance program, are
\nbeing pooled at Sumitomo Bank Ltd. and will be extended as loans
\nto Malaysia,<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/kl-seeks-5b-from-miyazawa-plan-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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